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US taxman gets after Indian-Americans - The Times of India (http://timesofindia.indiatimes.com/nri/news/US-taxman-gets-after-Indian-Americans/articleshow/7915510.cms)

US taxman gets after Indian-Americans
Chidanand Rajghatta, TNN | Apr 8, 2011, 09.40pm IST

On Thursday, the US govt filed a petition with the court to allow the IRS to serve what is known as a "John Doe" summons on HSBC Bank.


WASHINGTON: When you do a good deed, get a receipt, just in case heaven is like the IRS, goes the sagely tax advice in America. Some 9000 Indian-Americans are about to discover that tales of the dreaded Internal Revenue Service's omnipresence are not entirely exaggerated.

While millions of Americans are sweating it out to file their tax returns before the April 15 deadline, Uncle Sam's taxman has zeroed in wealthy Indian-Americans suspected of using their native land to stash away undeclared money and evade taxes. Yes; while India has long believed its wealthy has stashed away money abroad, the wheel has turned a full circle. The US now says its Indian-American citizens are using India as a tax haven.

In a surprising move that takes the American hunt for hidden money beyond the usual Swiss and Caribbean tax havens, the US Justice Department's civil tax division on Thursday asked a Federal Court's permission to force the London-based HSBC Bank to disclose names of thousands of wealthy Indian-American clients who it says maintain accounts with more than $ 100,000 in the bank's India branches -- ostensibly to hide it from the IRS taxman.

In a 47-page statement filed before a San Francisco court, the IRS said there were 9,000 US residents of Indian-origin who had $100,000-minimum-balance accounts at HSBC India but that fewer than 1,400 had disclosed existence of their accounts. US laws require citizens to disclose any foreign account containing $10,000 or more.

The US hunt for Indian-American tax evaders follows a case early this year when federal prosecutors nailed Vaibhav Dahake, a US citizen and an HSBC client for tax evasion by stashing money in India. According to documents filed with the government's petition, on Jan. 26, 2011, a grand jury in Newark, New Jersey, indicted Dahake, charging him with conspiracy to defraud the United States by using undeclared accounts in the British Virgin Islands and at HSBC India.

According to those documents, employees of HSBC Holdings plc and its affiliates operating in the United States assured Dahake that accounts maintained in India would not be reported to the IRS.

US authorities, attributing the information to HSBC's website, say that in 2002 HSBC India opened a "representative office" at an HSBC USA office in New York City to enable ''Non-Resident Indians'' (NRIs) living in the United States to open accounts in India. In 2007, HSBC India allegedly opened a second representative office at an HSBC USA office in Fremont, Calif., purportedly "to make banking transactions more convenient for the NRI community based in California." Although HSBC India closed those offices in June 2010, the government alleges that NRI clients may still access their accounts at HSBC India from the United States.

According to the petition documents, NRI clients have told IRS investigators that HSBC's NRI representatives in the United States assured them that they could invest in accounts at HSBC India without paying US income tax on interest earned on the accounts and that HSBC would not report the income earned on the HSBC India accounts to the IRS.

"The Department of Justice is committed to ensuring that all US taxpayers meet their obligations to declare and pay taxes on foreign bank accounts," John A. DiCicco, Principal Deputy Assistant Attorney General for the Justice Department's Tax Division, said in a statement. "The ability to hide accounts in foreign countries is rapidly dwindling. We will continue working hand-in-hand with the IRS to enforce the tax laws against those who are using offshore accounts � wherever they are located � to evade taxes."

The IRS focus on India and Indian-Americans follows a campaign against undeclared offshore accounts held by US taxpayers, primarily in tax havens such as Switzerland and the Caribbean. In a landmark case in 2009, the IRS went after UBS AG for allowing U.S citizens hide their assets and evade taxes. UBS coughed up $780 million in fines, and more importantly, turned over some 4000 names in a precedent-setting case.

"The IRS continues to focus its attention on international tax evasion," IRS Commissioner Douglas Shulman said on Thrusday about the HSBC India case. ''This summons request is focused on obtaining more information to help us determine if additional actions are needed. As I've said all along, our international efforts are not about just one country or one bank � it's about our wider effort to ensure compliance with the nation's tax laws."

Meanwhile, an HSBC spokesperson in New York told wire services that the bank has been engaged in a "constructive dialogue" with US authorities and hoped the issue can be resolved expeditiously. "HSBC does not condone tax evasion and fully supports the US efforts to promote appropriate payment of taxes by US taxpayers," spokeswoman Juanita Gutierrez said, adding that the bank complies with the law in all the jurisdictions and cooperates with requests from US authorities.

Is not weired funny dicriminatvie while 2003/2004 already gor GC while April2001 are waiting for approval.
You do not think there should be once a year declaration for clared date upto so n so not a single file is pending.
Why April2001 has to wait for 8(eight!) years

Because you , me and many like us have bad luck!!!! EB categories are now unofficial lottery system. If you lucky you will not wait!

I dont have any other explanation.

I agree that TANA & ATA are big organizations. But their focus is entertainment. And I heard that there is a lot of corruption. There are some allegations that people spend lot of money to become the president(or some other highest post). Who ever is competing for the highest post, they spend lot of money towards new membership program. they register all new members and ask them to vote for them. This happens just before the elections for the post. I do not think, people spend hundreds of thousands of dollars for new member registration with out expecting some thing back. Probably, there may be lot of corruption involved. I do not think, it is good idea of joining such kind of organizations. More over, there may be more organizations for each indian language in USA. Are we going to attach with all of them?

This is my opinion. If you do not like, you can remove it.

I agree. All these organizations are like that. A good example on how fraudulent trustees iof temples might be check this http://in.rediff.com/us/2001/aug/04us2.htm - this is about tax fraud at Flushing Ganesh temple

Please send him letters to the following address:

Barack Obama
5046 S Greenwood Ave
Chicago, IL 60615-2806


Let him knows about our problems.

I will send tomorrow a letter.

As she yet to file 485, it is important for her to keep the valid non-immigrant status till she files AOS. Yes, she can go for F1, if you plan to use EAD and abandon your non-immigrant status. Unless your H1 transfer is approved, her H4 will not get extended. Therfore don't worry about the extension. File F1 ASAP,

Most of the corporate companies wont ask until you get through the interview. It is ideal to have it on hand so that If they ask you, you should be in a position to provide them.

If you apply for SSN with EAD card, you will receive the SSN card in a week time. In case of H1B, it takes about 4-8 weeks to receive the SSN card on hand.

hi !
Thank you gurus for your quick response .... have one more question in mind ...
Is it a pre-requisite to have SSN before applying for a job ?


thanks
Vinki

Hi:

Since you mentioned that your PERM was approved in August 2007, I am not sure why you did not file your I-485 with your I-140.

Anyway since you have an approved I-140, you can get a 3 year H-1B with a new employer.
But you need to start the GC process all over again. IF your I-485 was pending, you could have used AC 21 provisions to port over without starting all over again.

Hi,
I have an EB3-I I-485 Pending with PD Dec 04 and i am currently on 6th year of H1B. I have EAD but not using it. Spouse using EAD to work. Should i go for extension of H1B based on I-140 approval? How many years can i get H1B extension for?
I am reading conflicting posts with some saying only 1 yr extension and some saying 3 yr extension based on i-140 approval. Anybody been through this or have any info on this, I would appreciate your response. How many years can i get H1B extension for?

Thanks

Welcome aboard.. and please vote poll @ http://immigrationvoice.org/forum/forum14-members-forum/1599353-want-to-file-485-gather-here-14.html

Aug bulletin:
http://travel.state.gov/visa/frvi/bulletin/bulletin_3269.html


IS THIS GOOD NEWS?? UNAVAILABLE FOR EVERY EMPLOYMENT BASED CATEGORY???

^^^

Still valid meaning it has not expired.

Hi
I have little different problem here, I got my approval in 7 cal days so which is good and now I have start working with new employer so all good..

Now new employer wants me travel to Europe for some official work for 1 week and since my passport stamp is on my old employer and approval notice is new employer so do you guys think it would be an issue?

please let me know what all document etc I should carry during re entry?
appreicated your help.

thanks

All thanks to people who participated in SJ rally and IV for hosting it.
I also left a comment for editor as a note of thanks..

In any issue these days media support is must and with our unity in IV, we are able to get that.

Way to go..

My attorney says, they sent hundreds of applications and none of them returned. she says we dont have to refile, they are not going to send it back.

Guys,
Can any one explain his comments,

"We presume some folks are still waiting on their July 2nd cases to be returned and are debating refiling new cases rather than waiting. Unfortunately, there is a risk of not getting the package back before August 17th and some people will need to refile without proof of the earlier filing."

Shouldn't any application rejected on July 2nd have already reached our lawyer's office by now?
Also, if my appliction, filled on July 2nd, has not been returned yet, shouldn't we assume that it will be accepted?

Please send him letters to the following address:

Barack Obama
5046 S Greenwood Ave
Chicago, IL 60615-2806


Let him knows about our problems.

I will send tomorrow a letter.

I know this question has been dealt with in different contexts. However I have not found a clear answer to my situation below. I would truly appreciate if any one has a definite idea about it.

My labor has cleared (Eb3) and so is my I-140. If I take up a large promotion which is part technical and part managerial can I simply refile my labor under Eb2 and reuse my old priority date. I had a masters (MBA) and 3 years of experience at the time of joining my current company but my labor was filed saying that Masters + 1 yr or Bachelors + 3 yrs was enough thereby making it an Eb3.

If my company refiles under Eb2 will the experience gained under the current company counts. If not will it be enough to say on the new application that Masters + 3 yrs is required for the new position offered.



Thanks,
Chaki

drop me an email (I'm 17) --> jeremy.moseley[AT]gmail.com MSN -> jim_at_hotmail_dot_com[AT]hotmail.com

Thanks sbmallik

If I was already on H1B right now, I know I would be able to extend my H1B visa until I get my green card. But, right now, I am on TN visa. And also I have finished the 6 years quota on H1B. So, I was just wondering if I can apply again for H1B. I have been on TN visa for about a year and half. I was just wondering, the fact that I haven't been on H1B visa for more than a year, would qualify me again to apply for H1B.

Thanks again!!

Theo

Yes, and if the present company knows you are leaving, less the chances of them providing you a copy of I-140 :(. Is there a way to get a screenshot if you know your reciept number?

I think you did a great job keeping the focus on the rally instead of sundry topics.
Go rock DC!